Health Care Administration – Final Exam Study Guide 2026 – Review and
Practice Questions
Academic Medical Centers - correct answer ✔✔ Hospitals and other types of providers that are
affiliated with a medical school and play active roles in training new health care providers,
especially physicians, and in clinical research in collaboration with a medical school.
Access - correct answer ✔✔ An individual's ability to obtain medical services on a timely and
financially acceptable basis. Factors determining ease of access also include availability of health
care facilities, transportation to them, and reasonable hours of operation.
Accountable Care Organization (ACOs) - correct answer ✔✔ An entity--usually a hospital or a
physician group--that accepts responsibility for the medical care of a population of people. An
insurer or government payer develops some form of financial incentives to motivate the ACO to
ensure that health care cost patterns for the covered group are better than the patterns for
comparable people not in the group. First initiated by the Medicare program, various versions of
the ACO idea are being tried by a range of payers.
Accreditation - correct answer ✔✔ A decision made by a recognized organization that an
institution substantially meets appropriate standards.
Activities of Daily Living (ADLs) - correct answer ✔✔ Tasks required for a person's normal
functioning.
Acute Care - correct answer ✔✔ Medical care of a limited duration, provided in a hospital or
outpatient setting, to treat an injury or short-term illness.
Advanced practice nurse - correct answer ✔✔ Registered nurse, such as a clinical nurse
specialist, nurse practitioner, nurse anesthetist, or nurse midwife, with a master's or doctoral
degree concentrating on a specific area of practice
,Adverse Selection - correct answer ✔✔ Occurs when a population characteristic, such as age,
increases health services utilization and costs above the capitation rate.
Advocacy - correct answer ✔✔ Actions taken by an individual or group aiming to influence
public policy, resource allocation, and other decisions. Activities may include media campaigns,
public speaking, funding, and publishing research, conducting polls, and lobbying.
Alliance - correct answer ✔✔ Organizational relationship for specific purposes.
Ambulatory Care Sensitive Conditions - correct answer ✔✔ Conditions for which patients are
hospitalized that could have been handled on an outpatient basis.
Appropriate Care - correct answer ✔✔ Care for which expected health exceed negative
consequences.
Assisted Living - correct answer ✔✔ Services provided to individuals who need assistance with
activities of daily living.
Attending physicians - correct answer ✔✔ Doctors who have "privileges" to use a particular
hospital for inpatient care of their patients.
Average Daily Census - correct answer ✔✔ The number of people ho stay overnight in a hospital
bed on a typical day at a specific hospital.
Avoidable Mortality - correct answer ✔✔ A count of unnecessary deaths from diseases for
which effective public health and medical interventions are available.
Bayes theorem - correct answer ✔✔ A formula fro determining conditional probability (the
likelihood of an event occurring given that another event has occurred) that allows for revising
existing predictions or theories given new evidence.
, Behavioral Health Services - correct answer ✔✔ Clinical and supportive activities intended to
treat or manage mental illnesses and/or alcohol or substance abuse (chemical dependency).
Behavioral Risk Factors - correct answer ✔✔ An element of personal behavior--such as
unbalanced nutrition, use of tobacco products, leading a sedentary lifestyle, or the abuse of
alcohol--that leads to an increased risk of developing one or more diseases or negative health
conditions.
Benchmark - correct answer ✔✔ The best known value for a specific measure,from any source.
Beneficiary - correct answer ✔✔ Any person, either a subscriber or a dependent, eligible for
service under a health plan contract.
Benefits - correct answer ✔✔ Specific areas of plan coverage , such as outpatient visits,
hospitalizations, or prescription drugs, that make up the range of medical services marketed
under a health plan.
Biotechnology - correct answer ✔✔ The use of living organisms and biological systems to
develop medical products and medical treatments. Biotechnology also is used in fields such as
agriculture, new fuel products, and plastics.
Bundled Payment - correct answer ✔✔ A payment arrangement whereby a provider is paid a
fixed amount of money to address a specific medical problem, often for a specific period of
time. For example, a surgeon could receive a bundled payment that covers his or her services,
the cost of any medical assistants used, the cost of any devices required for the surgery, and
perhaps the cost of the surgical suite itself.
Capitation - correct answer ✔✔ A payment method in which a physician or hospital is paid a
fixed amount per patient per year, regardless of the volume or cost of services each patient
requires.
Practice Questions
Academic Medical Centers - correct answer ✔✔ Hospitals and other types of providers that are
affiliated with a medical school and play active roles in training new health care providers,
especially physicians, and in clinical research in collaboration with a medical school.
Access - correct answer ✔✔ An individual's ability to obtain medical services on a timely and
financially acceptable basis. Factors determining ease of access also include availability of health
care facilities, transportation to them, and reasonable hours of operation.
Accountable Care Organization (ACOs) - correct answer ✔✔ An entity--usually a hospital or a
physician group--that accepts responsibility for the medical care of a population of people. An
insurer or government payer develops some form of financial incentives to motivate the ACO to
ensure that health care cost patterns for the covered group are better than the patterns for
comparable people not in the group. First initiated by the Medicare program, various versions of
the ACO idea are being tried by a range of payers.
Accreditation - correct answer ✔✔ A decision made by a recognized organization that an
institution substantially meets appropriate standards.
Activities of Daily Living (ADLs) - correct answer ✔✔ Tasks required for a person's normal
functioning.
Acute Care - correct answer ✔✔ Medical care of a limited duration, provided in a hospital or
outpatient setting, to treat an injury or short-term illness.
Advanced practice nurse - correct answer ✔✔ Registered nurse, such as a clinical nurse
specialist, nurse practitioner, nurse anesthetist, or nurse midwife, with a master's or doctoral
degree concentrating on a specific area of practice
,Adverse Selection - correct answer ✔✔ Occurs when a population characteristic, such as age,
increases health services utilization and costs above the capitation rate.
Advocacy - correct answer ✔✔ Actions taken by an individual or group aiming to influence
public policy, resource allocation, and other decisions. Activities may include media campaigns,
public speaking, funding, and publishing research, conducting polls, and lobbying.
Alliance - correct answer ✔✔ Organizational relationship for specific purposes.
Ambulatory Care Sensitive Conditions - correct answer ✔✔ Conditions for which patients are
hospitalized that could have been handled on an outpatient basis.
Appropriate Care - correct answer ✔✔ Care for which expected health exceed negative
consequences.
Assisted Living - correct answer ✔✔ Services provided to individuals who need assistance with
activities of daily living.
Attending physicians - correct answer ✔✔ Doctors who have "privileges" to use a particular
hospital for inpatient care of their patients.
Average Daily Census - correct answer ✔✔ The number of people ho stay overnight in a hospital
bed on a typical day at a specific hospital.
Avoidable Mortality - correct answer ✔✔ A count of unnecessary deaths from diseases for
which effective public health and medical interventions are available.
Bayes theorem - correct answer ✔✔ A formula fro determining conditional probability (the
likelihood of an event occurring given that another event has occurred) that allows for revising
existing predictions or theories given new evidence.
, Behavioral Health Services - correct answer ✔✔ Clinical and supportive activities intended to
treat or manage mental illnesses and/or alcohol or substance abuse (chemical dependency).
Behavioral Risk Factors - correct answer ✔✔ An element of personal behavior--such as
unbalanced nutrition, use of tobacco products, leading a sedentary lifestyle, or the abuse of
alcohol--that leads to an increased risk of developing one or more diseases or negative health
conditions.
Benchmark - correct answer ✔✔ The best known value for a specific measure,from any source.
Beneficiary - correct answer ✔✔ Any person, either a subscriber or a dependent, eligible for
service under a health plan contract.
Benefits - correct answer ✔✔ Specific areas of plan coverage , such as outpatient visits,
hospitalizations, or prescription drugs, that make up the range of medical services marketed
under a health plan.
Biotechnology - correct answer ✔✔ The use of living organisms and biological systems to
develop medical products and medical treatments. Biotechnology also is used in fields such as
agriculture, new fuel products, and plastics.
Bundled Payment - correct answer ✔✔ A payment arrangement whereby a provider is paid a
fixed amount of money to address a specific medical problem, often for a specific period of
time. For example, a surgeon could receive a bundled payment that covers his or her services,
the cost of any medical assistants used, the cost of any devices required for the surgery, and
perhaps the cost of the surgical suite itself.
Capitation - correct answer ✔✔ A payment method in which a physician or hospital is paid a
fixed amount per patient per year, regardless of the volume or cost of services each patient
requires.
